ISLAMABAD:
Amid tensions in the Gulf region, the government planned to import oil via the Red Sea from Saudi Arabia and the United Arab Emirates (UAE) due to the closure of the Strait of Hormuz, while also moving to a weekly oil price review mechanism.
Sources told The Express PK Press Club that the government is currently working on various measures to ensure uninterrupted oil supply amid the Iran-US-Israel war.
Pakistan imports around one million barrels of oil every month, with Saudi Arabia being one of the country’s largest oil exporters. The UAE also exports oil to Pakistan.
Sources said UAE-based ADNOC and Saudi Aramco would supply oil to Pakistan bypassing the Strait of Hormuz. A refinery has already imported some cargoes via the Red Sea. A few oil tankers have reached Pakistan, while others are on their way.
In another measure, the government is considering moving the review of oil prices from the existing fortnightly system to a weekly basis. The objective is to discourage the hoarding of petroleum products by resellers.
Sources said the government was planning a possible hike of Rs 50 per liter in oil following the recent war in the Gulf region.
The United States is pressuring India to stop oil imports from Russia. After the war, India reportedly imported bulk cargoes of Russian oil to secure its fuel supply via the Red Sea. Pakistan now also plans to receive supplies from Saudi Arabia and the United Arab Emirates through the same route.
They added that Pakistan National Shipping Corporation oil cargo ships have been put on standby to transport supplies from Saudi Arabia and the United Arab Emirates.
The Oil and Gas Regulatory Authority (OGRA) has already ensured high oil stocks to meet the country’s 28-day requirements following pre-emptive imports of surplus fuel.
Due to the Iran-US-Israel war, two crude oil shipments were stranded following the closure of the Strait of Hormuz. The strait is 33 kilometers wide and is a vital shipping route through which almost a fifth of the world’s total oil consumption passes.
On average last year, more than 20 million barrels of crude oil, condensate and fuel were transported through the strait daily. OPEC members such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq use this route to export most of their crude, mainly to Asia.
“However, we have been managing sufficient stocks of petrol and diesel to meet the country’s needs,” sources told The Express PK Press Club, adding that Pakistan currently had 28 days of stock of both the products.
Officials said the regulator already predicted in January that tensions in the Middle East could escalate into war between Iran, the United States and Israel. “Therefore, we secured oil stocks for over 25 days in January and 28 days in February through surplus fuel imports.”
Experts warn, however, that the entire world could face an oil crisis if the war continues for a week. “Our two crude oil cargoes are blocked due to the closure of the Strait of Hormuz,” a source said, adding that the rest of the imports were scheduled for later.
The Petroleum Division had earlier requested OGRA to ensure adequate stocks of crude oil and petroleum products (MS, HSD and LPG) to avoid any supply disruption. It was also ordered that imports be closely monitored for timely delivery due to the emerging security situation in the Gulf.
